Question

if you have this data from the american economy C=150=0.80y I= 200 Find the following :...

if you have this data from the american economy

C=150=0.80y

I= 200

Find the following :

1- The income equilibrium

2- Marginal propensity to consume (MPC), Marginal propensity to save my be expressrd (MPS) , Multiplier

3- find the equilibrium if the income = Planned aggregate expenditure (AE)

4- if the investment increase to be 250 find the effects in income equilibrium

5- Draw this function

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assume the following values: Marginal Propensity to Consume b = 0.8; Autonomous Consumption a = 200;...
Assume the following values: Marginal Propensity to Consume b = 0.8; Autonomous Consumption a = 200; Investment Spending I = 250. There is no government spending. a) For a consumption function C = a + bY, what is the equilibrium value for income Y in the economy? (The value at which planned aggregate expenditure and planned output coincide.) b) What changes when Investment Spending increases to 300? When it drops to 225? c) What effect can you observe in the...
Aggregate Output/Income Net Taxes Planned Investment Aggregate Consumption Government Spending 1,000 200 200 680 200 1,100...
Aggregate Output/Income Net Taxes Planned Investment Aggregate Consumption Government Spending 1,000 200 200 680 200 1,100 200 200 760 200 1,200 200 200 840 200 1,300 200 200 920 200 1,400 200 200 1,000 200 1,500 200 200 1080 200 1,600 200 200 1,160 200 Please show calculation a. Complete the table by determining the aggregate expenditure, the unplanned inventory change, savings and disposable income at all income levels                           b.               Determine the marginal propensity to consume (MPC) and marginal...
You have this data for the Palestinian Economy C=700+.8Y,       I=450 Find the Following :(5 marks) 1-Income...
You have this data for the Palestinian Economy C=700+.8Y,       I=450 Find the Following : 1-Income Equilibrium. 2-Multipler,MPC,MPS 3-if the investment decrease to be 350 find the effects in income Equilibrium. 4-Draw this Function please solve As soon as Solve quickly I get you thumbs up directly Thank you
NATIONAL INCOME The 2019 Zambian economy shows that the autonomous consumption expenditure is K185 million and...
NATIONAL INCOME The 2019 Zambian economy shows that the autonomous consumption expenditure is K185 million and the marginal propensity to save is 0.25. Investment function (I)=150+0.125y-10i, government expenditure is K100 million, and net taxes are K80 million. The report shows that investment, government expenditure and taxes are constant. The Central Bank indicated that the money markets are influenced by the money demand function M^d=300+Y-10i and money supply function M^s=350+90i. The statistics show that Zambian economy was not trading with the...
The multiplier effect Consider a hypothetical economy where there are no taxes and no foreign trade,...
The multiplier effect Consider a hypothetical economy where there are no taxes and no foreign trade, and households spend $0.90 of each additional dollar they earn and save the remaining $0.10. The marginal propensity to consume (MPC) for this economy is ; the marginal propensity to save (MPS) for this economy is ; and the multiplier for this economy is Suppose investment spending in this economy decreases by $150 billion. The decrease in investment will lead to a decrease in...
. Suppose an economy is represented by the following equations. Consumption function C = 200 +...
. Suppose an economy is represented by the following equations. Consumption function C = 200 + 0.8Yd Planned investment I = 400 Government spending G = 600 Exports EX = 200 Imports IM = 0.1Yd Autonomous Taxes T = 500 Marginal Tax Rate t=0.2 Planned aggregate expenditure AE = C + I + G + (EX - IM) By using the above information calculate the equilibrium level of income for this economy and explain why fiscal policy becomes less effective...
Suppose an economy is represented by the following equations. Consumption function C = 300 + 0.8Yd...
Suppose an economy is represented by the following equations. Consumption function C = 300 + 0.8Yd Planned investment I = 400 Government spending G = 500 Exports EX = 200 Imports IM = 0.1Yd Autonomous Taxes T = 500 Marginal Tax Rate t=0.25 Planned aggregate expenditure AE = C + I + G + (EX - IM) By using the above information calculate the equilibrium level of income for this economy and explain how multiplier changes when we have an...
in the economy of coconut island, autonomous counsumption expenditure is $50 million, and the marginal propensity...
in the economy of coconut island, autonomous counsumption expenditure is $50 million, and the marginal propensity to consume is 0.8. Investment is $160 million, government expenditure is $190 million, and net taxes are $250 million. Investment, government purchases, and taxes are constant-they do not vary with income. The island does not trade with the rest of the world. a) Draw the aggregate expenditure curve b) What is the equilibrium real GDP for Coconut Island? c) What is the size of...
Suppose that you have the following information for an economy: Marginal propensity to consume - MPC...
Suppose that you have the following information for an economy: Marginal propensity to consume - MPC 0.80 Autonomous consumption - A $500 Planned investment - PI $600 Net exports - NX -$400 Government spending - G $300 You will need this information for the questions that follow. Part 1: When real GDP is equal to $4,500, aggregate expenditure is equal to   $  . Part 2: When real GDP is equal to $5,000, aggregate expenditure is equal to   $  . Part 3: When real GDP...
1.Which of the following is a true statement about the multiplier? * The multiplier effect does...
1.Which of the following is a true statement about the multiplier? * The multiplier effect does not occur when autonomous expenditures decrease The multiplier is a value between zero and one The smaller the MPC, the larger the multiplier The multiplier rises as the MPC rises 2.According to the Keynesian model of the macroeconomic, the most effective means for closing a recessionary gap is * Decrease in marginal tax rates which shift SRAS Increases in government spending which shift AD...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT